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Answer Posted / mehraj wani
Credit Risk is the type of risk which arise when the
borrower fails to meet the obligation to the lender on the
date of maturity of a particular loan whether willfully or
unwillingly by way of principal or interest. Credit risk
may also may arise if third party fails to meet obligation
in favour of the lender (e.g, if bank gives loan against
insurance policy and insurance company fails to meet the
bank's obligation).
The following are the types of credit risk
1) willgful default
2) Time Risk
3) Sovering Risk
| Is This Answer Correct ? | 15 Yes | 2 No |
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